N.L. government wades into Oceanex, Marine Atlantic fight

The provincial government says it intends to wade into a legal battle between Oceanex and Marine Atlantic, in an attemptto prevent any possible increase inthe ferry service's commercial freight rates.

Oceanexapplied this yearto the federal courtto lower the subsidy Marine Atlantic receives from Ottawa, whichallows the ferry service to offer lower rates for commercial shipping.

Oceanex, a private shipping company,doesn't think that subsidy is fair, while the Crown corporationMarine Atlantic and retailers fear losing the federal subsidy would mean higher costs for consumers on the island.

• Freight fight pits Oceanex against Marine Atlantic, as retailers fear higher shipping costs

In a statement released Thursday, Justice Minister Andrew Parsons said the province will apply to intervene in that case, opposing Oceanex.

Parsons said if successful, Oceanex's move "will have direct and negative impact on the cost of goods in Newfoundland and Labrador."

"We will take whatever legal steps that are necessary to protect the constitutional right of Newfoundlanders and Labradorians to a modern and affordable ferry service," he said.

Marine Atlantic hiked its commercial ferry rates 2.6 per cent as of April 1.